Philippines Payroll Services

At Bradford Jacobs, we navigate the administration of the Filipino payroll system for you. We do the work, so you do not have to.

Filipino Payroll

Operating payroll in the Philippines is a huge step for international companies moving into this rapidly-developing market, known as one of the ‘Tiger Cub’ economies of the region. If you are making your move into the Southeast Asian and Pacific Rim economic arena you must understand the issues and make the right decisions accordingly.

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How We Can Help You

Expert knowledge is essential to deal with the paperwork and red tape that will jeopardise implementing your business plan swiftly and successfully… that is why you need Bradford Jacobs at your side. We have total understanding of all the issues surrounding Philippines payroll, taxes, labour laws and every aspect of employment compliance.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Philippines to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Philippines. However, this does require hiring dedicated HR staff who understand Filipino employment and compliance laws.
  • Philippines’ payroll processing company – If you are considering outsourcing, then working with a Filipino payroll company will help in processing your payroll – but not when it comes to compliance.
  • Philippines’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Philippines. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies intending to operate in the Philippines must incorporate a legal entity in order to recruit staff and run their payroll. In most countries, the preference is to open a limited liability company. This is not an option in the Philippines, where this business type does not exist. Generally, the choice is to form a corporation, which provides similar protection to a limited company for the parent company, shareholders and incorporators.

The Philippines Labour Code is the overriding legislation covering employment law. The Ccde covers regular full-time employees, as well as those on seasonal, temporary, part-time and fixed-term contractsand probationers. Procedures for onboarding employees include:

  • Registering employees with the Bureau of Internal Revenue (BIR)
  • Obtaining the 12-digit Tax Identification Number, if required, using Form 1901, 1902, 1903 or 1904 depending on status of individual and type of income
  • Form 1902 must be used if the employee does not already have a TIN, and fill in employees’ ID, marriage certificate if applicable, birth certificates of dependents
  • Employers registered with the BIR eREG can apply via the eTIN module
  • Employees must also be registered with the Social Security System (SSS); the Philippine Health Insurance Corporation (PhilHealth) and the Home Development Mutual Fund (Pag-IBIG Fund). Note: the employer must first register with each of the agencies and employees’ information must be updated as necessary with each of the agencies

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